Ecopetrol buys stake in pipeline for US$417.8 million

Colombia’s state-controlled oil company Ecopetrol agreed to acquire the majority stake in a Colombian pipeline from
Canadian energy transportation company Enbridge for $417.8 million,
Ecopetrol said Monday.

The transaction, to be concluded Tuesday, will allow Ecopetrol to increase its
stake in the Ocensa pipeline from 35.3% to 60%, Ecopetrol added.

Ocensa is the country’s main oil pipeline, with capacity to transport as much
as 650,000 barrels per day.

The 829-kilometer pipeline runs from the oil fields of Cusiana and Cupiagua,
which are controlled by BP PLC (BP), to the oil port of Covenas on the Caribbean
coast.

“This transaction strengthens Ecopetrol’s strategic positioning in the oil
transportation business as it acquires the main artery for oil transportation,”
Ecopetrol added.

Shares of Ecopetrol rose 0.7% on Friday to 2,090 pesos ($0.84), while the IGBC
stock index climbed 0.7%. The Colombian stock market hasn’t opened yet. (Dow Jones)

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